Macro 1 Flashcards
What is GDP?
GDP is the monetary value of all goods and services within a country’s border in a given time period
Why is GDP important
Measure the economic performance and size of a country’s economy
What is unemployment rate ?
Rate the percentage of the labour force that is unemployed and actively seeking employment
What can a high unemployment rate indicate ?
Can indicate underutilisation of labour resources and economic distress
What is inflation rate?
Measures the rate of percentage change in the average price level of goods and services over time
Impact of high inflation ?
Can erode purchasing power and disrupt economic stability
what is balance of trade ?
Is the difference between a country’s exports and imports of goods
Define government debt
Is the total amount of money the government owes to creditors
Why are government debt levels are a concern for policymakers ?
High government debt levels can lead to concerns about fiscal sustainability and increased interest payments
What is exchange rate
Represents the value of one currency in terms of another
How can changes in the exchange rate affect international trade ?
Can impact the competitiveness of a country’s exports or imports
What is a recession?
A period of negative economic growth for two consecutive quarters
What are the Consequences of a recession ?
Reduced consumer spending and business investment, leading to job losses and lower GDP
